"Economically illiterate" coming from someone who couldn't analyze econ data if it smacked him in the face. Whatever.
Ghost of Cutten, thanks for the post. I shall heed your advice. I cant believe I got cold feet on FAS. Its up 23% in 2 days. Insane !!
I've heard this before...about tech stocks in '99, housing in '06 and oil in early '08. Go long, can't lose, this will go on forever...
The market is going straight up for one very simple reason. The FED is giving virtually free money to banks. They have 2 options, borrow money at 0.5% and buy treasuries and get maybe 1-1.5% on it. Bit of profit in that. OR Borrow money for 0.5% buy all the assets they can get their hands on and potentially make 60-70% on it and if they dont they tell the FED they are bankrupt and they get saved. Its win win
It's possible that the economic data will continue to improve, however less likely that the Fed will remain loose with monetary policy. For what it's worth, despite a strong jobs report this morning, gold crashed to 1372, but as I type, it has blown through the 1394 high from yesterday. If you are concerned about the possibility of the Fed removing stimulus, you could do what I am doing: a pair trade of long gold + short S&P 500. Since the post-Fed lows of 1327 (gold) and 1180 (S&P 500), gold is up by 5% and S&P 500 is up by 3.6%. However in risk adverse periods such as late 2008 and early 2009, gold fell by less than equities.
its what the ES does dude! It's designed to go up over time. Lots in things are in place to ensure an upside bias. It will keep flying up over time. Its like a few others have said: "we may never see 1000 ES ever again, but we are GUARANTEED to see 1500+ at some point. g-u-a-r-a-n-t-e-e-d"
What an asinine comment. 90% of the content is not even related to market bias, but for whatever reason the only people who obsess over this antiquated "bull vs bear" line of bullshit post on this site. It reminds me of the same crap I heard a few years ago when folks would buy precious metals or crude oil futures, but were bearish equities. They'd be called perma-bears simply for expressing an opinion on stocks, but the context was missing. They were only bearish relative to dollar devaluation (i.e. stocks priced relative to "hard" currencies).
So true. I've learned through experience that when I get that feeling of, "Uncle uncle!!! I give up!! Okay I'll buy!!" That's when I should step back and wait.